Chris Huhne's response to Manchester Friends of the Earth

Addressed to: Manchester Friends of the Earth
Date: 7 March 2011

I have received a number of letters from supporters of Manchester Friends of the Earth about local carbon budgets and energy efficiency in rented accommodation. I will not be replying to the letters individually, but please feel free to publish this response on your website.

I agree that it is very important that Local Authorities show strong leadership and responsibility in cutting carbon emissions both from their own estates and operations and those arising within their areas. Many are enthusiastic about playing their part in meeting national carbon mitigation targets and have already set in place stretching ambitions and policies for emissions in their area – and are making a difference.

I signed a Memorandum of Understanding (MOU) with the Local Government Group on 9 March to recognise the pivotal role councils have in tackling climate change by reducing carbon emissions from their own estate and operations; encouraging and enabling their residents, businesses and visitors to reduce their carbon emissions; and by achieving national priorities such as the Green Deal and renewable energy deployment in a locally appropriate way. This MOU builds on the Local Carbon Framework pilots (LCFs), which we expect to provide important information which will drive an evidence based policy approach which encourages local initiative without imposing central burdens on local authorities, and the Nottingham Declaration which is a ‘bottom-up’ approach to tackling climate change, signed by over 90% of councils.

The Coalition Government believes everyone should be able to benefit from energy efficiency measures. Through our Green Deal, we will encourage the installation of home energy efficiency improvements paid for by savings from energy bills.

We expect the Green Deal will go a long way to solving the problem of split incentives that has hampered progress in the private rented sector. It will remove the need for landlords to pay upfront costs for measures that they do not directly benefit from, while enabling tenants to enjoy lower fuel bills and a warmer home. We expect the Green Deal to be available to consumers from 2012; we hope and expect that landlords will respond positively to this offer.

However, we are also seeking to create powers in the Energy Security and Green Economy Bill which could require landlords to honour reasonable requests for energy efficiency improvements, where a financial support package is available. It could also allow Local Authorities to insist that landlords improve the worst performing homes. These powers, if used, will not come into effect until 2015 to give landlords time to make voluntary improvements under the Green Deal first.

Response published on Department of Energy and Climate Change website.